File your Self Assessment after 28th February and there will be a penalty
The government extended the deadline to file yourself Self Assessment tax return until 28th February, from the original date of 31st January. You should be aware that there will be a penalty if you fail to file the tax return before the 28th February.
Interest will be due from 31st January for all monies owed
The deadline for payment for the amount owed, this is the figure shown when you do your Self Assessment, did not change. That date remained 31st January. This is important because it means that interest will be charged for monies owed from 31st January.
5% penalty if you don’t make a payment or an arrangement by 1st April
The government announced that Self Assessment customers will not be charged the initial 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by 1st April. You need to pay or make and arrangement soon to avoid this particular penalty – you will still have the interest charges from 31st January though.
Monthly Payment Plans can be arranged to help you
HMRC recognise the pressure, created by the pandemic, on the self-employed, they have a help and support line: 0300 200 3822. You can phone this line and discuss your outstanding monies and the best way to make the payments.
There is a self-serve “Time-to-Pay” facility that allows you to spread the cost of your tax payments with monthly instalments up to January 2022. Follow this link to set up a payment plan online